October 16, 2014
Want to make the most of the record-low interest rates on offer? You may want to consider refinancing your home loan. With the current competition between the banks, there are some great deals being offered. You could potentially save by switching to a low fixed rate and some lenders are even offering cash-back of up to $1,000 for refinances.
What is refinancing?
Refinancing or ‘loan switching' is the process of paying out your current home loan by taking out a new loan, either with your existing lender or through a different lender.
People refinance for a number of reasons and right now it’s a great way to obtain a record-low fixed interest rate. Some other reasons are to raise cash for large purchases such as a car, paying off debts, renovating your home or for other home improvements.
Refinancing to a low interest fixed rate can offer you a peace of mind and stability, knowing that you will be paying that same amount over the next three to five years. It’s especially helpful in establishing a budget, knowing that this is at least one payment that will not change in the next few years.
What are the costs involved in refinancing?
Exit fees may apply when you pay out a loan early, usually in the first three to five years of your term. Although exit fees have been banned on new loans taken out after 1 July 2011, they could still apply to loans taken out before this date. There may also be borrowing costs involved such as a loan application fee, however not all lenders charge these fees and some may be negotiable.
Your best bet is to have a chat with us and we can weigh up the costs involved and then balance these with the potential savings of switching home loans.
Why choose Mortgage Choice?
We compare hundreds of home loan options for you from up to 28 lenders, including the big four banks. Our home loan service is free of charge to our customers because the lenders pay us.
We can give you a free home loan health check in just one hour, and if you decide to switch, we do all the legwork. We also offer convenient appointments to fit your busy lifestyle, at the time and place that suits you.
Make an appointment today by contacting us my phone: 02 4739 9749 or email: email@example.com